This makes it seem like the borrowers were the one's that drove the debt boom. That is only partly true. Those of us that have been around remember the days when banks went from a simple DSR calculation, where you can borrow around 3.5 times your annual gross income to the 'cash flow' models around today using ridiculous statistics on cost of living expenses etc. so that the borrowing capacity (on the same income) is almost double in many cases. The banks changed this themselves. On $100k back then your maximum loan was about $350k. Now it would be over $500k. Nothing seems to be said about this?Same income - more debt! (and higher cost of living).The other fundamental change in the 90's was the number of double income households. Of course this can only change once.

I agree , at present I cannot see credit growth returning beyond 5% while we have no clear direction from either party , they both need to stop the American style campaigning and tell us what they are going to do about the housing sector , it needs some assistance and direction. The borrowers and FHOG need direction and certainty .